2008-045 - Considering the City's Statement of Investment Policy

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CITY OF SANTA ANA STATEMENT OF ThVESTMENT POLICY JULY 2008-2009 not exceed the shareholder's equity of any depository bank, or the total net worth of any depository savings association or federal association, or the total of the unimpaired capital and surplus of an insured industrial loan company. F. Repurchase Agreements. For purposes of this section, the term "repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by w~ich the seller will repurchase the securities on or before a specified date and for a specified amount and will deliver the underlying securities to a third party custodian. The City may invest in repurchase agreements with primary dealers of the Federal Reserve with which the City has entered intc a PSA master repurchase contract which specifies tems and conditions of repurchase agreements. The market value of securities used as collateral for repurchase agreements shall not be allowed to fall below 102 percent of the value of the repurchase agreement and shall be valued daily by the tri-party custodial agent. Securities that can be pledged for collateral shall consist only of investments permitted within this policy with a maximum maturity of five (5) years. If there io a default of the broker, the collateral securities can be sold. Since the securities are valued daily, it is likely that the sale proceeds will equal or exceed the va:ue of the repurchase agreement amount. Purchases in this category shall not exceed ninety (90) days or thirty percent (30t: of the cost value of the Fund. G. Local Agency Investment Fund - State Pool. The City may invest in the Local Agency Investment Fund lLAIF) established by the State Treasurer under California Government Code Section 16425.1 for the benefit of local agencies. Although there is no percentage ~imitation on this f'.md, the "prudent investor" rule sha1l apply for a single agency name. H. Medium Term corporace Notes issued by corporations organized and operating within the United States or by depository institutions licensed in the United Sta.tes or any state a..>J.d operating within the united States. Notes eligible for in'lestment shall be rated in a rating category of "A" or its equivalent or better by a nationally recognized rating service. Purchases in this category shall not exceed three (3) years :0 maturity or fifteen percent (1St) of the cost value of the Fund. Purchases in a single issuer in this category ahall not exceed five percent (st) of the cost value of the Fund. I. Shares of beneficial interest iRsued by divergified management companies that are money market funds registered with the Securities ~nd Exchange Commission under the Investment Company Act .of IHO. The company shall have met either of the fo:lowing criteria: Resolution No. 2008-045 Page 7 of 10